Hi ,
BACKGROUND :: My company (registered in Delhi) gets certain gift items produced (vendor is also based in delhi) according to our designs. We sell these products right now in Delhi and Gurgaon. We now have enquiries from Kolkata, Bangalore, Mumbai, Hyderabad and Chennai. I am told every state has different rules when we are to sell our products in those states. In our case it will be Tamil Nadu, Andhra, Karnataka and maharashtra. we are already doing interstate sales with Haryana. I have a TIN number issued to me by Delhi Authority.
There are two types of sales we do. Customised products that we get made for our clients where the client is also the end consumer (ie the godds are not sold further). The second kind of sale is to retailers who then sell it after adding a margin.
There are two types of bills i raise (as instructed by my accountant), a retail bill and tax invoice. whenever my sale is in delhi and the dealer is a registered I raise a tax invoice. for everyone else i raise a retail invoice.
QUERIES :: My questions are as follows.
1. For interstate sales if the retailer does an outright purchase what taxes do i have to charge in my invoice. If the retailer takes the goods on consignment (ie whatever sells will get paid for at the end of the month) will the tax applied change.
2. All my goods go by courier, so do i need to pay any other taxes or submit any forms along with the courier.
3. Does the dealer who "imports" my goods into his state have to send me any forms.
4. In an interstate sale to a retailer can the retailer claim input tax credit in eitehr of the cases ie if he buys it on outright purchase or on consignment.
5. I charge 12.5 % tax on my asle to the retailer and if he charges another 12.5% tax in his state the consumer ends up paying 25% more. Is there a way that this "tax burden" be reduced, it also means more sales for us.
6. Finally I get my goods produced to my specifications and design by a vendor. Does that make me a manufacturer or trader. The vendor makes these goods exclusively for me. Do I get any incentives incase I am a manufacturer. Are there any incentives in taxes for women entrprenuers.
Thanking you all in advance.
CAclubindia
